Tax-Planning Client Letter on Irrevocable Trusts, Gift Tax, and Estate Tax
Tax-Planning Client Letter on Irrevocable Trusts, Gift Tax, and Estate Tax. Suppose you are a CPA, and your client has requested advice regarding establishing an irrevocable trust for his two (2) grandchildren. He wants the income from the trust paid to the children for 20 years and the principal distributed to the children at the end of 20 years.
Analyze the effect of an irrevocable trust on the gift tax and future estate taxes. Suggest other significant alternatives that the client could use both to reduce estate tax and to maximize potential advantages of the payment of gift taxes on transfers of property. Use the six (6) step tax research process, located in Chapter 1 and demonstrated in Appendix A of the textbook, to record your research for communications to the client.
The specific course learning outcomes associated with this assignment are:
Prepare client, internal, and administrative documents that appropriately convey the results of tax research and planning. Create an approach to tax research that results in credible and current resources. Analyze tax issues regarding the gift tax and the estate tax. Analyze tax issues regarding trusts and estates. Use technology and information resources to research issues in organizational tax research and planning. Write clearly and concisely about organizational tax research and planning using proper writing mechanics.
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